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QUESTION 4 (CONT'D) (B) Manhattan Inc. has three operating divisions. Their results for 2019 are as follows: Leo Taurus | Sales Contribution margin Operating income

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QUESTION 4 (CONT'D) (B) Manhattan Inc. has three operating divisions. Their results for 2019 are as follows: Leo Taurus | Sales Contribution margin Operating income Investment base $5,000,000 1,440,000 1,000,000 9,000,000 Gemini $7,000,000 1,700,000 1,750,000 10,000,000 $10,000,000 3,500,000 2,520,000 14,000,000 The company's desired rate of return is 20%. REQUIRED a) Compute each division's ROI. b) Compute each division's residual income. c) Rank each division by both ROI and residual income. d) Which division had the best performance in 2019? Why? mo

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